Do I qualify for a 72 hour transit? Anyone can confirm this?

On April 21 I am flying from Seoul, Korea to Shanghai and on April 22 I am flying from Shanghai to Taipei, Taiwan. I just want to ensure I am eligible for the 72 Hours Free Transit Permit. The process is; 1) I request the 72 hour transit permit from the airline in advance; 2) If I meet all requirements I will be granted the transit permit at the airport (where at the airport?); 3) Since I am staying at a hotel in Shanghai, I need not register with the local police, the hotel will handle the registration?