Did ancient Chinese practice martial arts

Yes, but primarily spear and sword based martial arts. While Kung Fu was indeed invented in China, its inventor was a Tamil Indian prince turned Yogi/Buddhist Monk named Bodhidharma, also known as Daruma or Ba Tuo. However, the Daoist sword arts are much, much older; ideas of incorporating chi into martial arts are as old as China itself, originally though, the martial arts which were a precursor to Tai Chi Chuan, were all weapons based. You know how in movies and martial arts myth, they talk about swords being able to slice through metal? That way that is accomplished is by channeling chi into the blade. In Japan, many Samurai insisted that the Bokken, that is a wooden Katana, was in fact superior to a metal sword.

How would a wooden sword be superior to a metal one? For one, wood is taken from a living thing, and, it is a better conduit of chi energy than metal is. According to Samurai myth and legend, some Japanese Samurai developed chi that was so strong, they could actually cut using wooden swords, as cleanly as if though the blade were made of metal. The idea is preposterous I know, but its there in Japanese Samurai myth. Point in fact some of the oldest sword arts in the world are in fact Chinese; the science behind Samurai sword play originated in China. From the various bladed weapons the Chinese used, there is even a native Chinese sword that ressembles the Katana. Even the skill of steel refinement, is originally Chinese. Steel was first used by the Chinese during the middle Han period if I am not mistaken.