This is a Chinese weapon, and a variant of the dao, or saber. As such, it is a single-edged weapon primarily used for slashing, and this variant in particular features a very broad blade and significant size that allows it to be a formidable chopping sword. It was a peasant’s weapon, and also a relatively recent development; it saw notable use at the Marco Polo Bridge Incident of 1937, an altercation between Chinese and Japanese forces that could be argued as the start of World War II. The loose fabric tassel is a feature common on Chinese weapons, and serves a mainly decorative function. Some sources I found claim that it also functioned as a distraction to opponents in combat, but personally I have doubts about its effectiveness in that capacity.