We'll need to get some updated reports so we can see how the policy plays out in real time. My guess is that the intent is to cut the workload of immigration officers and streamline procedures for passengers with short layovers--who wouldn't have to time to leave the airport anyway. It's just operationally silly to have these types of situations, which are many, run through immigration procedures even at a transit desk.

For other scenarios where people have longer layovers by intent or by necessity of connection scheduling, I find it hard to believe Shanghai will eliminate the existing 24/48 hour TWOV options....they love the incremental money too much! Perhaps it will become a situation where if on long layover and you want to leave airport, they will route you to a desk and give you a stamp for the asking. Essentially, two separate streams of TWOV passengers: the short-connects and the quick-hit visitors.

Of course, especially for the first scenario, this means that PVG's policy of forcing even the transit passengers to pick up luggage at baggage claim, will have to be amended. This might be beneficial to a LOT of transit passengers with transits up to 24 hours. Over that, you'll probably be picking up luggage anyway.