Typhoon Morakot bore down on Taiwan, packing strong winds and threatening to soak the island when it makes landfall late Friday or early Saturday local time.

The typhoon, whose wind gusts reached 120 mph, is expected to dump about 40 to 50 inches of rain in the area, according to CNN meteorologist Jennifer Delgado. The storm's speed has slowed down, but winds have intensified, she said.

Taiwan is taking precautions because it is being pounded by heavy rains, Delgado said.

As of 5 p.m. Friday (5 a.m. ET), Morakot was 103 miles (166 kilometers) southeast of Taipei, Taiwan's largest city, according to Delgado.

CNN meteorologist Kevin Corriveau predicted its impact would be massive.

"This storm has already dumped about 400 millimeters (16 inches) of rain in the central and southern part of the island, and they're still expecting another 500 (20 inches) to 800 millimeters (32 inches) of rain over the next 24 to 48 hours," he said. Watch more about the typhoon's impact

The storm's impact had already been felt by Friday morning (Thursday night ET), with mudslides and landslides occurring on the island. iReport.com: See balcony view of heavy rains

Complicating matters is the fact that the area has been severely affected by drought in recent months, which has left the ground so hard that it does not absorb the rainfall, he said.

But the island tends to prepare well for such events.

"They take it very seriously," Corriveau said. "Just like Cuba is very good at handling hurricanes, Taiwan is very good at handling typhoons."

Airlines have canceled flights and schools have been closed.

On Thursday, Taiwanese Premier Liu Chao-shiuan examined the island's emergency operation center and asked all personnel to stay on high alert, with the typhoon forecast to "affect all regions of Taiwan," according to Taiwan's Central News Agency.

Government offices and schools were closed Friday in preparation for the arrival of the medium-strength typhoon, CNA reported.

Trading at the Taiwan Stock Exchange was postponed until Monday, the news agency reported.

Taiwan and Eastern China are particularly vulnerable to flash flooding and mudslides because of the proximity of the mountains to the sea.

Once it hits land, Morakot is expected to weaken to tropical storm strength, the Central Weather Bureau reported. [link to www.cnn.com]