3 hour layover in Shanghai 14 hours in Kunming, where can I go?

Hello, I am from Canada and me and friend are travelling to Thailand. On our way out there we have a 3 hour layover in Shanghai and a 14 hour layover in Kunming, PRC. According to this website it would appear that because we are in PRC for less than 24 hours we do not need a visa to leave the airport, but, it says we can only travel in the administrative area of the transit site (which would be Kunming I assume because we wouldn't have time in Shanghai). Can someone tell me what is included in the administrative area and where we are allowed to go? also for the 24 hour free transit so we need to let customs know like we do for the 72 free transit??
Thank you!