-- along the lines of speculative fiction, sci fi, unreal reality (China) - especially because in most magical realism literature, a few specific elements are shifted slightly and woven seamlessly into narrative that is mostly grounded in reality.
Magical realism writers/writers influenced by magical realist elements:
Gabriel García Márquez
Jorge Luis Borges
[ wikipedia ] : Origins
Literary magic realism originated in Latin America. Writers often traveled between their home country and European cultural hubs, such as Paris or Berlin, and were influenced by the art movement of the time. Cuban writer Alejo Carpentier and Venezuelan Arturo Uslar-Pietri, for example, were strongly influenced by European artistic movements, such as Surrealism, during their stays in Paris in the 1920s and 1930s. One major event that linked painterly and literary magic realisms was the translation and publication of Franz Roh's book into Spanish by Spain's Revista de Occidente in 1927, headed by major literary figure José Ortega y Gasset. "Within a year, Magic Realism was being applied to the prose of European authors in the literary circles of Buenos Aires." Jorge Luis Borges inspired and encouraged other Latin American writers in the development of magical realism - particularly with his first magical realist publication, Historia universal de la infamia in 1935. Between 1940 and 1950, magical realism in Latin America reached its peak, with prominent writers appearing mainly in Argentina.
The theoretical implications of visual art's magic realism greatly influenced European and Latin American literature. Italian Massimo Bontempelli, for instance, claimed that literature could be a means to create a collective consciousness by "opening new mythical and magical perspectives on reality", and used his writings to inspire an Italian nation governed by Fascism. Pietri was closely associated with Roh's form of magic realism and knew Bontempelli in Paris. Rather than follow Carpentier's developing versions of "the (Latin) American marvelous real," Uslar-Pietri's writings emphasize "the mystery of human living amongst the reality of life". He believed magic realism was "a continuation of the vanguardia [or Avant-garde] modernist experimental writings of Latin America".