Shanghai's officials warned people to stay indoors At least 140 flights have been cancelled and rail services disrupted.
State meteorologists say the storm may intensify as it nears coastal Zhejiang and Jiangsu provinces, near Shanghai.
China's National Marine Environmental Forecasting Centre has upgraded its warning to a red alert - the highest possible - for shipping in the East China sea.
Muifa is likely to skim the coast as it heads north, says the Central Meteorological Administration.
It has already battered the Philippines - where it caused flooding - Taiwan and Japan's southern island of Okinawa, which was hit by blackouts.
Local government officials have urged residents to stay indoors, according to an official statement carried by local newspapers.
'Severe impact' Meanwhile, nearby Zhejiang province has moved 206,664 people from coastal areas, with the typhoon expected to make landfall on Sunday.
China Southern Airlines has cancelled more than 140 flights to eastern China from Saturday afternoon while Shanghai-based China Eastern Airlines warned of a "severe impact" on services, reported AFP news agency.
Shanghai's rail authorities are planning inspections of local high-speed rail networks and warned that some services could be halted or delayed depending on the storm's severity.
On Wednesday night, Muifa was downgraded from a super typhoon - measuring 185km/h (114mph) or more - to a severe typhoon, but it is still expected to be one of the most powerful storms to hit China in recent years.
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