The new feature will work just like shortcuts in Windows-they are pointers to a file stored in another location. The shortcut can be stored anywhere without impacting the location of the original file. Google gave this example in its blog post
announcing the feature:
If Paul in marketing shares a document from his team's shared drive with the entire sales team, Greta in sales can create a shortcut to that document in her own team's shared drive. Previously, because documents can't be owned by two shared drives, Greta would need to create a copy of the document for her team's shared drive, which could then quickly become out of date.
Google writes that supported content types for shortcuts include Docs, Slides, Sheets, JPGs, PDFs, folders, and Microsoft Office files.