Does this count as a "transit" for the 240 Hour Visa-Free Transit?

Hi everyone,

I’m planning a trip with this route:

Jakarta, Indonesia → Shanghai, China → Melbourne, Australia

I understand that China’s 240-hour visa-free transit requires you to travel from one country to a third country.

Does it still count as "transiting" eventhough China is technically out of the way from Indonesia -> Australia. Or does the geography doesn't matter as long as I go to a different country?

Thanks