Is the visa-free still permitted in Shanghai?

Currently in Shanghai Pudong airport now, I flew in from New York, having 8hrs layover in Shanghai with connecting flight to Osaka. The 24-144hrs foreigner line denied my access saying no visa can’t get out of airport even when I mentioned I’m leaving on the same day with boarding ticket present. Other travelers were all not permit to leave the airport with layover too. They couldn’t answer when they stop allowing foreigner to leave airport free transit, now we need a China entry permit in order to leave.