What kind of dancing are they doing in "Kung Fu Hustle"?

Question

Is that a real dance?

Answer 1

They are doing a specially choreographed weapon form (kata), which is arranged with multiple performers and edited to look like a hustle/line dance.

Kata are sequences of movements used in the martial arts. The traditional ones are meant to teach/practice combinations of movements and combat techniques, though some (like this one) are purely aesthetic.

Kata are very much like a very rigidly specified dance. Though they are not dancing, you will sometimes see them performed to music to show the similarities. Here the choreographers have emphasized this similarity with an axe kata (probably one they made up especially for the movie).

This movie employed the talents of two legendary Hong Kong choreographers - so unfortunately I don't know which of them to credit: Sammo Hung, or Woo-Ping Yuen.

This is one of my favorite movies.