I think it's interesting, and China itself is unique, but I don't know if what the author describes is a new literary genre per se. It sounds a lot like plain old magical realism, mixed with a bit of postmodernism.
The annotation thing the author describes as a "risk" he took sounds pretty similar to Infinite Jest and I'm still not sure how ultra-unrealism differs from magical realism, despite the attempt at distinguishing them. Would China's magical realism be at all similar to Haruki Murakami's take on magical realism? Both ideas seem to include the search for identity, powerful and all-seeing obstructive forces, allegory, etc.