The recovery of the world economy in 2021 was uneven and unstable. The recovery of China’s economy exceeded expectations but the downward pressure gradually intensified. This report reviews China’s fiscal policy since 2008 and argues that its logic has shifted from Demand Management to Risk Trade-off. The fiscal policy in 2020 has hedged the public risks caused by the COVID-19 epidemic with a more proactive tone，which has also led to the rise of fiscal risks. The more-than-expected economic recovery in 2021 has tilted the proactive fiscal policy toward sustainability，focusing on improving quality and efficiency in preventing and defusing fiscal risks. The main contents of its policies are as follows. First，coordinating public risks and fiscal risks by stabilizing spending efforts. Second，reducing the operating risks of market players through continuous tax and fee reductions and financing support. Third，focusing on major public risks by supporting major national development strategies. Fourth，social and financial risks should be coordinated through spending on people’s livelihood security that is best-effort and within our capabilities. Finally，to prevent and resolve financial risks by regulating local government debt management. The implementation of the proactive fiscal policy in 2021 has promoted the stable recovery of the economy and the release of fiscal risks，effectively safeguarded the basic livelihood of the people，and promoted the restoration of the vitality of market players. However，under the continuous spread of the COVID-19，the risks and challenges in economic and social development are still great. Further affected by factors such as geopolitical events and the withdrawal of the easing policies of major economies，the uncertainty of the macro environment has intensified again. This poses a greater test for the precision of fiscal policy risk trade-offs.