Some production has shifted back to Hong Kong. But the problem is that, once in Hong Kong, the costs become prohibitively high. In response, garment manufacturers are pressing the government for permission to import laborers from Southeast Asian countries such as the Philippines or Indonesia. This is met with strong opposition from the unions and workers. The garment industry is but a reminder that high costs are a scourge to the economy here.
More harsh realities are in sight.
The East Asian economies that have devalued their currencies are quietly stealing exports from the others that kept their currency values unchanged. This is to be expected because a cheaper currency should stimulate exports. Those people were wrong. But as these economies have stabilized, many orders for export goods have returned. Cost adjustments are difficult.