How does shallow compare work in react

In this documentation of React, it is said that

shallowCompare performs a shallow equality check on the current props and nextProps objects as well as the current state and nextState objects.

The thing which I am unable to understand is If It shallowly compares the objects then shouldComponentUpdate method will always return true, as

We should not mutate the states.

and if we are not mutating the states then the comparison will always return false and so the shouldComponent update will always return true. I am confused about how it is working and how will we override this to boost the performance.

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