Taiwan hunkered down on Wednesday ahead of the arrival of Typhoon Gaemi, the first typhoon of the season to affect the island. Financial markets closed, people were given the day off work, flights were canceled, and the military was put on stand-by amid forecasts of torrential rain and strong winds. Gaemi, which is currently categorized as a medium-strength typhoon by Taiwan, is expected to make landfall on the northeast coast early evening on Wednesday, according to the island’s Central Weather Administration. After hitting Taiwan, the typhoon is expected to move across the Taiwan Strait and then hit the southeastern Chinese province of Fujian late afternoon Friday. In rural Yilan county, where the typhoon will first hit land, wind and rain gathered strength, shutting breakfast eateries and leaving roads mostly empty. “This could be the biggest typhoon in recent years,” fishing boat captain Hung Chun told Reuters, adding that Yilan’s Suao harbor was packed with boats seeking shelter. “It’s charging directly towards the east coast and if it makes landfall here the damage would be enormous.” Work and school are suspended across Taiwan, with the streets of capital Taipei almost deserted during what is normally rush hour amid squally rain. The transport ministry said almost all domestic flights had been canceled, along with 201 international flights. All rail operations will stop from midday (0400GMT), but the high speed rail services connecting northern and southern Taiwan will continue to operate. However, TSMC, the world’s largest contract chipmaker and a major supplier to Apple, said it expected its factories to maintain normal production during the typhoon, adding it had activated routine preparation procedures. Some mountainous central and southern Taiwan counties are expected to see total rainfall of up to 1,800 mm (70 inches) during the typhoon, the weather administration said. More than 2,000 people have been evacuated from sparsely populated mountain areas, the government said, which are at high risk of landslides from the “extremely torrential rain”. Taiwan’s defence ministry said it was ready to assist with disaster relief and had put 29,000 soldiers on stand-by. While the typhoon has severely curtailed this year’s annual Han Kuang war games, they have not been canceled, with live fire drills taking place as scheduled on the Penghu islands in the Taiwan Strait on Wednesday morning. The typhoon is forecast to make landfall in China’s Fujian late Thursday. Gaemi, with a cloud system spanning the Western Pacific, northern Philippines and parts of the South China Sea, is expected then to turn north, bringing rain to provinces such as Hubei, Henan and even Hebei. Gaemi will start to lose its power and structure as it moves over land, but its remnants may still bring days of precipitation to northern Chinese provinces, which just a year ago were battered by historic rains due to a typhoon and suffered record economic losses. Gaemi and a southwest monsoon brought heavy rain on Wednesday to the Philippine capital region and northern provinces, prompting authorities to halt work and classes, while stock and foreign exchange trading were suspended. While typhoons can be highly destructive, Taiwan also relies on them to replenish reservoirs after the traditionally drier winter months, especially for the southern part of the island.