Chicago > Shanghai (layover less than 24 hrs) > Okinawa > Shangha (layover 48 hrs) > Chicago

Flying through Shanghai from Chicago to Okinawa and back. Less than 24 hr layover in Shanghai going, so would apply for Temporary Entry Permit in Shanghai to stay in hotel overnight then fly out the next day to Okinawa. On the way back would apply for the 72 hour free transit at Shanghai to stay in hotel for 2 nights and then fly out next day to Chicago. Does this sound right?

Also, it states that passengers transiting in Shanghai, Zhejiang, or Jiangsu can move around the three places. Does this mean that coming in/out of Shanghai I could visit Zuhou which is in the Jiangsu province?