Disclaimer: my statements come from personal research into this
subject, and may or may not be accurate information. Discretion is
left with the reader as to whether or not to accept these statements
as fact.

Chi and Ki are different things. Aside from Chi( pronounced Che)

being

japanese and Ki (pronounced Ke, both e's are long) being chinese,

they

refer to completely different things. 

This is what you have right.

Chi is Focus. When you concentrate your Chi, you focus on

something.

Using your Chi in a punch would mean concentrating completely on

the

punch. Also, the better one can focus their Chi, the better they

put

their entire body into a punch. 

This is what you do not have right.

Focusing your Chi on your opponent would usually mean paying extra
attention to his moves and style. It would also mean increased

ability

to read emotions and body language. 

This is also what you do not have right. The reading of moves, style,
emotions, and body language are skills learned through training. They
do not inherently relate to nor do they inherently use chi. 

Ki is the energy side of the coin. Ki comes in two types, positive

and

negative. Positive Ki is living energy. You have it, trees have it,
grass, birds, aforementioned four year old, they all have it.

Negative

is the energy of non life, _NOT_ death. Bricks, rocks, dirt, undead
monsters, and CD's all have negative Ki. There is nothing

inherently

evil about negative Ki, but few good guys have any reason to learn

to

use it. 

You are close to correct.

Also, when someone is filled with negative Ki, they don't heal.

Since

people can be infected with it through pure Ki attacks, this can be
lethal. It doesn't matter how good a hospital the peron is in. They

have

negative a Ki infection, they're probably going to die. That's why

bad

guys like it so much.

You have been watching too much Kung Fu.

In japanese, as far as I've been able to tell, there is no

distinction

made between Chi and Ki. They're both called Chi. Hence my usages

of Chi

in the above paragraph. 

This is because the Japanese spelling is pronounced ki. For no other
reason are they called the same.


Chi is the energy of the body. Chi is the force which science admits
must exist and yet seldom gives credence to, due to its inability to
qualify or quantify it. Chi is, simply put, your life force. One who
has spent many years developing and strengthening their chi will
recover very quickly from any injury or illness, as well as possess
the ability to turn their own chi towards others, either to heal
injuries or to repel an attack. Even the most basic of martial arts
teach one how to focus chi to achieve such things as breaking boards
with your feet, hands, or head. Focusing your chi in one part of the
body strengthens that part, hardens it like steel, so that when you
strike, or are struck, it is not you that breaks, but the other
object or person. Chi is the energy of within.

Ki is the energy of the world. Ki is the life force of the people
around you. It is the life force of the plants and animals around
you. It is the random bit of static electricity waiting to shock you
when you touch the car door handle. Those with the proper training
can harness the energy of their environment, and use it to enhance
their own chi, thus enabling greater stamina, strength, speed, or
clarity of thought and focus. Ki is the energy of without.