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Two-cabin first now counts as First class award?

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I was trying to book a flight going through PEK-PVG(or SHA)-NRT. The PVG-NRT flight was only available in Business, so I used a saver business award ticket. However, the agent refuses to book me into first class on the domestic China flights PEK-PVG/SHA, saying that Air China sells them as First class, and hence if I want them, I have to pay 7.5k more miles. This contradicts my memory. It seems to me that First class award was only applicable towards a three-cabin flight, but not a two-cabin flight. Therefore, the first class on the two-cabin flight should only be counted as a business award. Has this been changed sometime ago? Thanks!

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