It means every type defined by XML Schema can be defined in CLS (.NET type system) and vice versa.
For example, if we have xs:string in XML Schema, we have System.String in .NET. And If I define this class in C#:
public class Foo
{
public string Bar{get;set;}
}
I can represent that in XML Schema:
<xs:complexType name="Foo">
<xs:sequence>
<xs:element name="Bar" type="xs:string" minOccurs="1" maxOccurs="1" />
</xs:sequence>
</xs:complexType>