In Table 4, the Chinese variables (industrial production and producer prices) appear to be the most exogenous variables among the six variables in the system. Most shocks are explained by their own innovations (87-97%) over the 24-month horizon. Such a result provides methodological support for the varX and VECMX modelling approach used in this study. On the other hand, the trade balance and real exchange rates are considered endogenous. In line with long-term estimates, real exchange rate innovation explains a significant part of the expected change in error in the trade balance (about 20%). When it comes to the exchange rate, the most important innovation comes from the Chinese producer price. However, the Malaysian producer price is relatively exogenous, although it was included in the conditional model as an endogenous variable. The Chinese had sent a message to the deposed sultan (king) of Malacca about the fate of the Portuguese embassy, which kept the Chinese prisoners. When they received his response, Chinese officials continued to execute the Portuguese embassy and cut their bodies into several pieces.  After being under Portuguese control, Chinese traders boycotted Malacca, some Chinese from Java aided in Muslim attempts to retake the city by boat from Portugal. The Java-Chinese participation in the reconquest of Malakka was recorded in “The Malay Annals of Semarang and Cerbon”.
 Trade with the Chinese did business with Malays and Javans instead of the Portuguese.  By gradually improving relations and helping the pirates of Wokou along the Chinese coast, Ming China finally agreed, in 1557, to allow the Portuguese to settle in Macau, in a new Portuguese trading colony.  The Malay Sultanate of Johor also improved its relations with the Portuguese and fought alongside them against the Sultanate of Aceh. China became the largest trading partner of many East Asian nations after the Asian financial crisis of 1997/1998. For Southeast countries (ASEAN-10), China accounted for 12.9% of regional trade and surpassed the United States (8.1%) in 2012 and Japan (10.6%). This figure was only about 2.2% and 1.9% for total ASEAN-China exports and imports ten years ago (ASEAN Statistical Yearbook). A number of recent studies have therefore demonstrated China`s complementary effects on its trade neighbors, in line with improved economic ties [1-4]. Multinationals are integrating China into the global production system with former market players, thus promoting regional trade . Chinese companies specialize in coordinating with regional counterparts, thereby increasing trade in differentiated products. In other words, the advent of China as a global economic power has led to an increase in the diversification of work and intraregional trade, which may lead in the long run to regional economic integration similar to that of the European Union or the North American Free Trade Agreement [6, 7]. Although tuberculosis is a measure of the trade balance without units, defined as a ratio between Malaysian exports and imports vis-à-vis China, Q as the true Malaysian ringgit and PP and PP* domestic or foreign producer prices.
If the Marshall learning condition applies, then > α3 1, so that a real devaluation of the national currency (RM) improves the Malaysian-Chinese trade balance. Traditionally, real domestic income is signed negatively (α1 0), since an increase in Chinese income implies an increase in demand for Malaysian exports and tuberculosis is improving. . . .