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\section{Discussion}  \label{sect:discussion}  In a CTTS system, stellar wind and disk wind interact. The high magnetic and thermodynamic  pressure of the disk wind can confine the stellar wind into a narrow, jet-like region, bound by an elongated shock surface. For reasonable parameters of $\dot M$, $v_\infty$, $\omega_0$ and $P(z)$ the shock surface encloses a region only several AU wide but tens of AU along the jet axis.   The shock surface is so small that it cannot be resolved with current instrumentation and therefore cannot be seen directly as a cavity in the disk wind. A small fraction of the stellar wind is shocked to X-ray emitting temperatures $>1$~MK and provides a stationary X-ray source consistent with observations.   Paper~I showed that a shock with these properties is required to explain the observed X-ray emission in the CTTS DG~Tau if shocks are major heating agents. We show that such a shock naturally arises in a scenario where the stellar wind is confined by an external pressure and feeds the innermost layers of the jet.