With winds up to 93mph, the storm landed in Fujian province early on Monday, bringing heavy rains and causing widespread power cuts.
At least two people have been killed by the typhoon, state-run news agency Xinhua reported.
The authorities earlier issued the highest alert – red – for the area.
Some homes are said to have collapsed in neighboring Zhejiang province and two port workers are missing.
Typhoon Fitow – named after a flower – made landfall at 01:15 local time on Monday in the city of Fuding, Chinese meteorologists said.
They warned that some areas in Fujian and Zhejiang could see more than 8 inches of rain in the coming hours.
In Fujian, 177,000 people were evacuated before the storm hit the coast, Xinhua said, while in Zhejiang, some 574,000 people had to leave their homes.
Some 35,000 boats in Zhejiang and 30,000 in Fujian were ordered to return to harbor for shelter.
Coastal facilities such as seaside bathing centres were also closed, state media reported.
“We must not leave anybody in danger,” Zhejiang Governor Li Qiang was quoted as saying.
The typhoon also caused suspension of bullet trains and coach services in several cities in the area.
Dozens of flights to and from Wenzhou airport in Zhejiang were cancelled.
The storm is now moving north-west and is expected to weaken quickly.
Typhoon Fitow is the 23rd typhoon to hit China this year, Xinhua reported.
It comes just weeks after Typhoon Usagi killed at least 25 people in southern Guangdong province.
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