"She came back, bringing new trends, new training methods and new ideas to Chinese short track speed skating."
"Li Yan is an outstanding and respectable woman," he added.
Xiao admitted problems had existed in the Chinese team but spoke highly of Li's management.
"There had been problems in the Chinese team but they were part of growing up," Xiao said. "I think Li Yan handles these things quite well."
The Chinese short track team has had enough bad publicity since Li took the helm. In 2007, Wang Meng attacked Li's management and the two reconciled during the Vancouver Games where Wang got on her knees to thank the coach after retaining the women's 500m title. In 2011, Wang, already China's most decorated Olympian, was expelled for drunken brawl with a team official.
Wang, who had whipped up form since being out of exile, sustained the serious injury over 20 days before the Olympics, a heavy blow to the Chinese team which had been dreaming about a repeat of Vancouver glories.
Li gave 80 points out of a full 100 to her work as the head coach.
"I have 20 kids and only 10 of them could make it to the Olympics," said Li. "The others are working hard and waiting for their chances. I hope the Chinese team will be stronger and better."
While vice sports minister Xiao is waiting for Li's decision on contract extension, China's first winter Olympic champion and International Olympic Committee member Yang Yang advised Li to go home.
"It's time for Li Yan to spend time with her family," said Yang.
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