Since the world financial crisis in 2008, Chinese local government has stepped up financing efforts on infrastructure investment, thereafter the arguments about "the state advances, but the private retreats" and risks of investment and financing have been going on. From the specific case, this paper provides a deep analysis on internal political-economic reasons and existing risks that Chinese local government stimulates the economy by increasing investment and financing, including how to reposition the relationship between central and local governments from the institutional level, and how to innovate the financing channels, and how to reform the financial system, etc.