Singapore - Vincent Xue operates an online grocery retail business that offers fresh produce, canned food, and packaging easy-to-cook ingredients to provide easy-to-cook ingredients to local consumers in Singapore.

Xue's NASDAQ listing Webuy global resources mainly come from suppliers in China. One-third of his suppliers have overstocked in China since the second half of last year, with huge discounts as high as 70%.

He said in Mandarin when translating at CNBC: “The Chinese domestic market is too competitive and some larger catering manufacturers are working hard to destroy their inventory because consumer demand is weak.”

Xue has also become busier this year after establishing a partnership with Chinese e-commerce platform Pinduoduo, which has been entering Southeast Asian countries.

"There are about 5-6 containers with Pinduoduo orders every week," Xue said, "Webuy Global will support the last mile of delivery to customers.

While steep tariffs prevent China from exporting to the United States, overcapacity has caused Chinese producer prices to stay on inflationary territory for more than two years. Consumer inflation remains close to zero.

Experts say the country is still doubling its manufacturing sector, and this production is rippling in the global market, raising anxiety in Asia that cheap imports could squeeze local industries.

"Every economy around the world cares about being flooded by Chinese exports ... many economies, many of them, are starting to be barriers to imports from China," said Eswar Prasad, senior professor of trade policy and economics at Cornell University.

But for economies involving inflation, economists say the influx of low-cost Chinese goods comes with a silver influx: consumers are cheaper. This, in turn, may provide some relief for central banks as they grow behind rising trade tensions while reducing the cost of living.

For markets with limited manufacturing industries such as Australia, cheap Chinese imports can alleviate the crisis of cost of living and help alleviate inflationary pressures, said Nick Marro, chief economist at the Economist Intelligence Department.

Nomura said emerging growth risks and gentle inflation could pave the way for cuts across Asia, and that Nomura expects the region's central bank to further separate the Fed from the Fed and provide additional easing.

Investment banks predict that the Reserve Bank of India will provide an additional 100 basis points for the rest of the year, with central banks in the Philippines and Thailand lowering interest rates by 75 basis points, while Australia and Indonesia can lower interest rates by 50 basis points, while South Korea has reduced them by a quarter of a percentage point.

In Singapore, the rise in cost of living was a hot issue during the New York state election ahead of the polls held last month.

Nomura's economists say the country's core inflation may be surprised at the lower end of the MAS forecast range, citing the impact of influx of cheap Chinese imports.

When low-cost commodities in China flood, it is not a person who witnesses the effects of destruction.

"The dissolution power may penetrate the entire Asia," Nomura economist added. Asian countries are expected to be affected by the "China shock" in the coming months.

Asian economies are already alert to China's excess capacity, with several countries imposing anti-dumping responsibilities to protect local manufacturing production, even before introducing Trump's full tariffs.

In the late 1990s and early 2000s, the world economy experienced the so-called "China shock" when the import rate of cheap Chinese imports helped to keep inflation low while also causing losses to local manufacturing jobs.

As Beijing focuses on exports to offset domestic consumption resistance, various sequels appear to be underway.

China's exports to the ASEAN group grew 11.5% in the first four months of this year, as U.S. freight volumes dropped by 2.5%. In April alone, China's goods soared 20.8% as exports to the United States exceeded 21%.

These items are usually discounted. Economists at Goldman Sachs estimate that Japanese imports of Chinese products have been 15% cheaper in the past two years compared to products from other countries.

India, Vietnam and Indonesia have adopted various trade protectionist measures to provide fierce price competition for domestic producers, especially in sectors with overcapacity and cheap imports.

While for many countries, large amounts of Chinese goods are a trade-off between lower inflation and the adverse effects on local production, countries such as Thailand may face a double-edged sword.

Nomura economists predict that Thailand may be the hardest hit to the “China shock”, slipping into deflation even this year, while India, Indonesia and the Philippines will also see inflation drop below central bank targets.