Chi is real, I've experienced it first-hand, and I used to practice "energy work." I've gotten a bit out of it, however. It's real. If you focus the chi up from your dan tien into your palm for long enough, and focus it to become dense, you can feel a magnetic-type feeling (for some), and, well, it's a bit hard to explain. Try it before you deny it.

It's all about visualization, and 'feeling'. If you become advanced enough, you can use tactile visualization to feel it out, instead of simply visualizing it in your mind's eye. This allows for very efficient work. In that video, nobody is going to be able to do what that guy does without decades of intense training. What he did with the piece of paper, that's called pyrokinesis.

I agree with palerider, anything and everything is possible. Look at what's coming into view with quantum physics now. We're all energy anyway. What makes non-believers so sure that it's impossible to be able to manipulate chi energy, when in fact, we are made from energy. The reason is simple: most have never considered it, let alone tried it out with some seriousness involved.