<type name="Magento\Catalog\Model\Product">
    <arguments>
        <argument name="catalogProductStatus" xsi:type="object">
            Magento\Catalog\Model\Product\Attribute\Source\Status\Proxy
        </argument>
        <argument name="productLink" xsi:type="object">
            Magento\Catalog\Model\Product\Link\Proxy
        </argument>
    </arguments>
</type>

This is a type configuration.

This configuration is for the base area. Base area configurations will apply to all the sub-applications.

This configuration tells the Object Manager that when a user wants a Magento\Catalog\Model\Product object that the following arguments should be used in the foo object's constructor.

• $catalogProductStatus = new Magento\Catalog\Model\Product\Attribute\Source\Status\Proxy (...)
• $productLink = new Magento\Catalog\Model\Product\Link\Proxy (...)