Chapter 1
When Han Li started cultivating at the very beginning, he identified the power that flowed within him as True Qi. As he learned more about martial arts, he noted that this power didn’t have the aggressive and powerful properties of True Qi and thus identified it as psuedo true Qi.
After learning more about cultivation, he began to understand this power to be magic power that flowed within his body. This magic power was refined from the spiritual power that resided in the enviroment near him with a cultivation technique.
Although the author doesn’t make it very clear, there is a very slight difference. Magic power is what a cultivator refines from the spiritual power in their enviroment and can develop their cultivation. Spiritual power is when it is in raw consumable form.
In videogame terms, this is both Max MP and the magic stat, boosting the power of spells and such applications. Qi Refinement during meditation increases both Max MP and current MP. When Max MP reaches a certain threshold, it also increases your magic stat. Spiritual Power is Raw MP from the enviroment. Current MP can be used in order charge up magic tools with spiritual power and cast spells (magic techniques). Basically, whenever magic power is applied and leaves the body (and current MP is consumed), it turns back into applyable form of spiritual power.
At least, that is how I see it.
Hope this makes sense,
Doubledd.