Currently, Chinese academia distinguishes the environmental risk prevention principle from the environmental damage prevention principle largely due to a narrow definition of the former. Consequently, the environmental risk prevention principle has proven difficult to implement within China’s environmental legal framework. This principle should not only include the precautionary principle—as already established in national existing law—but also address “residual risk”. In its modality, “risk prevention” should incorporate elements of hazard prevention, risk aversion, and future warning. Moreover, the principle of environmental risk prevention serves three functions within the environmental law. The principle provides a crucial guiding concept for the Eco-Environment Code.