This scheme is one of the first that Google has actively combated since the beginning of SEO.
If there is absolutely no legitimate reason to keep these links (i.e. they are not contextually relevant to each other and they do not add value for the end user), you want to break the cycle.
You can do this by either nofollowing the links, or by having them removed completely (or just removing them yourself if the pages are yours).
If the webmaster doesn't agree to nofollow or remove the link from their page and you're overseas chinese worldwide database dealing with an unnatural link penalty (a manual action), you can use a disavow tool to quickly disavow the links.
2. Li
Type: Unnatural links to/from your site
Fix: Remove or nofollow
The social nature of link exchange was never Google's goal, so if you're considering removing your friends' or partners' links from your Blogroll or Partners page, stop right there—that's not the type of link exchange Google is after.
This link exchange page at SueAnnabrookeJones.com, for example, is well done and designed to create a network of similar pages that are truly useful to the reader.
nk exchanges done solely to boost PageRank
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