During the process of pushing forward the reform of Chinese state-owned enterprise, one of the most important problems is how to solve the redundancy in Chinese state-owned enterprises. By reviewing the literature at home and abroad, this paper found that political interference result in redundancy in Chinese state-owned enterprises. The ways of political intervention includes the state-owned controlling shareholders, the governmental departments and the grass-roots communist party organizations in state-owned enterprises. Redundancy not only reduces the performance of state-owned enterprises, but also significantly increase the agency costs of state-owned enterprise. On the basis of summarizing the existing literature, this paper points out several issues that may need to be paid attention to in the future.