More info about Visa-Free Transit in China

Most nationalities require a visa to enter China. A visa is not required however if you are in transit and meet the following conditions.
72-hour visa free transit in Beijing and Shanghai for a general China tour.

If you meet the following criteria, you can stay up to 72 hours in Beijing or Shanghai without a Chinese visa. You can visit the city at your leisure and book a hotel, etc.
The conditions are the following:
- Your transit is no more than 72 hours;
- You have plane tickets to a third country;
- You enter through the Beijing Capital Airport, Shanghai Pudong Airport or Shanghai Hongqiao airport;
- You will depart from the same city that you arrived from (for Shanghai you can arrive at one airport and leave from the other);
- You cannot leave the city to go to another Chinese city during the 72 hours;
- You must hold a passport of one of the 45 approved countries:

Twenty four European Schengen countries: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland; Seven other European countries: Russia, the United Kingdom, Ireland, Cyprus, Bulgaria, Romania and Ukraine; Six American countries: the United States, Canada, Brazil, Mexico, Argentina, and Chile; Two Oceania countries: Australia, and New Zealand; Six Asian countries: Korea, Japan, Singapore, Brunei, United Arab Emirates, and Qatar
The authorities have stated that those who enter other cities will face punishement, those who brake the law during their stay will face a lifetime ban and that all visitors must carry identity paper with them at all times.
Procedure
Make sure that you have a printed copy of your flight tickets. Note that the 72 hours are calculated based on your flights scheduled arrival and departure and not when you show up at immigration. After getting off the plane you will head for immigration. Look for a counter that say "Transit visa exemption" or something like this. Show your ticket and passport. They will stamp your passport (different stamp than if you have a regular visa). You then pick up your luggage then head to the taxi line or subway.
What is not acceptable for 72-hour visa free stay in Beijing and Shanghai.
Going back to the same country is not a valid transit. For example you cannot fly Vancouver-Beijing-Vancouver. Nor can you fly Vancouver-Beijing-Toronto. You do not qualify for this exemption if you have a double transit in China such as Vancouver (Canada)-Beijing (China)-Kunming (China)-Hanoi (Vietnam). In this case you can only get the 24-hour transit visa exemption. Note that Hong Kong-Beijing-Macau is accepted.
What if you do not meet the criteria above?
If your stay exceeds 72 hours you need to apply for a visitor's visa. Google for the website of the Chinese embassy in your country to learn about the application process. If you arrive at a different port of entry than the 3 listed above, or have a passport from a country that is not on the approved list then you still qualify for the 24-hour exemption. There are very few entry points (such as Shenzhen and Sanya) where a limited visa-on-arrival can be granted under certain conditions and only for certain nationalities.
During the 72 hours, you can take part in tailor-made China tours to explore Beijing or Shanghai.