Milicic, who led Australia at the 2019 Women's World Cup, is tasked with maintaining China's strong record in the tournament and will have to halt the Matildas' pursuit of an elusive trophy in the process.
The former Macarthur boss has spent the last few weeks in Shenzhen running the ruler over his Steel Roses side, who mostly play in China's domestic competition.
It's a luxury that Australia coach Joe Montemurro isn't afforded with the Matildas set to fly into Perth from their club sides in Europe and the USA, a week out from their first Group A game with the Philippines on March 1.
"Being together for this extended period, it really gives us an opportunity to get them to a place where we need them," Milicic said.
"We've worked a lot on the tactical side of things and then match fitness as well.
"For our girls, the advantage of being in camp for five weeks is… they're very resilient.
"They've got an appetite to work hard, they're taking in the information and so we are fortunate with the positive outcomes we believe we can achieve."
Milicic's side were drawn in Group B and face Bangladesh, North Korea and Uzbekistan and if both the Chinese and Australians top their groups they would not meet until the final.
China are nine-time champions of Asia having won the last edition of the tournament in 2022.
They won't enter next month's tournament in the strongest of form after being smashed 8-0 by European champions England late last year.
But Milicic believes they have the firepower to go deep.
"Of course you can go back to back because in a tournament and in a one-off game, you back yourself and are confident against any opponent," he said.
"It's difficult and there's other teams, on paper, that are more likely favourites than ourselves."
Milicic believes the Matildas are a "massive threat" with an experienced coach and the advantage of playing at home.
"I think they're there at their prime to achieve something special," he said.
