Although the Japanese swords seem to get the most attention... it would seem that the Chinese actually showed the Japanese the methods to create them.
The difference between a Display and Combat sword.. is mostly the metal used.
A display sword is typically stainless steel, as it wont rust. This stainless does not hold an edge well, and will dull easily.
A Combat sword is made of High Carbon steel... and can be sharpened to a razor blade edge. Its strength is far greater to that of the Display swords. You can bash them into something like a steel dumpster... making a good gash into it.. yet the sword wont even have a scratch on it.
If you look around, I think I recall someone did a video of them smashing a display sword.. destroying it... and there was pretty much no damage to the combat sword.
Also, I remember reading about Chinese sword forging. It said that if you want the sharpest edge... you would need a kind of metal that was brittle. This however, wouldnt do well in combat because the sword would break easily combat. However, making the sword with more flexible steel, resulted in a poor cutting edge. As a result, they inserted the brittle metal into the softer metal... and so the sword become like a pencil. It could withstand heavy impact without breaking... and its edge could be used to shave the hair off your arm with ease... and could be resharpened over and over.. again, much like a pencil. Quite cool. (Im not sure if this is how all of them were made, or only a certain kind / era)
I did own a combat sword, though sadly it got stolen. It was a Chinese Broadsword. The thing was almost a CM in thickness on the largest part of the blade. Quite impressive. It came in a hand carved wooden scabbard... with a dragon and some characters on it.
I got it unsharpened... knowing that someone myself... or someone else, would probably end up in the hospital one day.
I recall bashing it into a few things to test it. Even dull, it cut like an axe.
Ive seen combat Tai Chi Jian swords cut through water bottles like butter, leaving a perfect edge and the remaining part still standing. As well as the typical bamboo mat test. Id love to get hold of a good Jian.. as well as a few combat butterfly swords.