Typhoon Kong-rey weakened to a tropical storm overnight and was forecast to bring heavy rain and high winds to Shanghai and other parts of China's east coast Friday.
The storm crossed Taiwan at typhoon strength on Thursday, bringing down trees and causing landslides that covered roads and damaged houses.
Two people died and more than 500 others were injured.
Authorities in Taiwan's east coast province of Hualien said they had restored contact with a Czech couple feared missing.
The two had pitched a tent in Taroko National Park and were in good condition, according to the official Central News Agency.
Kong-rey, which is a Cambodian name, was heading northeast along the Chinese coast and could make landfall Friday afternoon in Zhejiang province before veering back out to sea, the National Meteorological Center said.
The passing storm is expected to affect Shanghai and parts of Zhejiang and Jiangsu provinces, with torrential rain of 10 to 12 centimetres possible in some areas.
Zhejiang and neighbouring Fujian province suspended multiple ferry routes ahead of the approaching storm.
In Taiwan, light rain fell Friday morning in the capital Taipei, while island-wide, schools and offices had largely reopened and public services were mostly restored.
Workers cleared fallen trees and shop owners swept up debris in Taiwan after one of the biggest typhoons to hit the island in decades claimed at least two lives.
The typhoon passed north of the Philippines earlier in the week, prompting fresh evacuations just days after devastating Tropical Storm Trami killed at least 145 people the previous week.
Intense rainfall caused in part by Trami also killed seven people in China's Hainan province as the storm passed by the island, which is known for its beach resorts, off the country's southern coast.