Travelling to Sweden - transitting in China

I am an Australian citizen and in May 2013 I am travelling from Sydney to Stockholm, Sweden. Initially my flight was only stopping in Beijing for about 8 hours for both legs. No visa was required. Now, the airline has changed the flight. It now stops in Shanghai en-route to Beijing and requires an overnight stay in Beijing. Air China is putting me up for one night in accommodation outside the airport, then the journey continues to Stockholm the next day. The return flight seems simpler. It is from Stockholm direct to Beijing, transit of 7 hours then on to Sydney. What type of Visa do I require, and is it a double, triple entry or what? The Chinese Transit Visa application states they require a copy of the visa to the 3rd country (Sweden), but Sweden does not require Australians to get a visa if staying in the Schengen zone for less than 90 days. What do I do?