Are you referring here to the right of any WTO member to invoke 'non application' as a one time measure against a new member? Is this what the US will (or already has done) against China? Does non application in this case mean that neither China nor the US will have the right to bring grievances against the other before the WTO governing body?
While China may now have a "legal" warrant to deprive American companies of certain concessions, perhaps the US capitalist state has been decided that it is best to be unfettered from WTO regulations that after all can be turned on US companies (both at home and abroad). Perhaps US negotiators think that the US can get more net benefits and concessions through bilateral negotation since the chip of access to the US market grows ever stronger with Chinese and Japanese domestic stagnation and with the prospect of European regionalism and protectionism.
If the US has decided to keep annual review, I wouldn't blame it on US labor. It's probably US capital that has decided to abolish the WTO--why be bound by a global institution when you can get all you want without giving much up through bilateral deals. Perhaps US capital will decide next to do away with the IMF and the World Bank.
I did like that David Spiro book which is a case study of US dismantling of global institutions for hegemonic ends.
Yours, Rakesh