Indeed, based on conversations with clients (we've been delivering globally from China since 2007), what Scott retells as being the primary concerns about Chinese-based delivery is a perfect match of the most recurring deal breakers in the country. But as Alex has commented, the main roadblock is hinted in Scott's post as well: a triving economy and a huge domestic market that's growing several times above the worldwide average GDP growth rate. Little surplus for exports means that local providers are more focused on the domestic market. Brazil will probably feature it's unique set of Myths, but the reason why it hasn't yet taken of is largerly the same: a thriving domestic market.
You can read Scott's full post here.