"The time is not much before the Olympics, but China has a lot of potential," she said.
"We have showed in the World Cup that we can play with the world's best teams.
"Whoever taking the team, China will be very much competitive in Beijing. They have good chances to win a medal."
China got back on track with a string of victories after Domanski-Lyfors took over in late March.
Women's soccer in China suffered a slump after the 1999 World Cup, in which the "Steel Roses", spearheaded by star striker Sun Wen and playmaker Liu Anling, grabbed silver, the country's best result on the big stage.
Most Chinese recall the team's dazzling 5-0 win against then-reigning champion Norway in the semifinal and the regrettable penalty shootout loss in the final to host the United States.
Following the retirement of several stars, China failed to make a smooth transition to the next generation because of a dearth of talent and frequent coaching reshuffles.
Chinese fans were stunned by the team's 8-0 collapse to Germany at the Athens Olympics and 4-1 loss to minnow Iceland at this year 's Algarve Cup.
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