On Thursday, both Myanmar's junta and an ethnic minority armed group asserted control over a town and regional military command in northern Shan state, following several days of intense clashes. The fighting in Lashio, which houses the military's northeastern command, began on July 3 when an alliance of ethnic armed groups launched a renewed offensive against junta forces. According to local media managed by the Myanmar National Democratic Alliance Army (MNDAA), the group claimed to have 'fully captured the headquarters of the Northeast Military command in Lashio' on Thursday morning, along with the town itself, which is home to approximately 150,000 residents. MNDAA spokesman Li Jiawen confirmed the capture of Lashio without providing additional details. However, junta spokesman Zaw Min Tun refuted these claims, stating that they were 'not true' and that security forces were tracking and eliminating insurgents who had infiltrated the outskirts of Lashio.

The northeastern command is situated in the northern part of Lashio. A video posted on social media, purportedly filmed in Lashio on Thursday morning, depicted empty streets devoid of soldiers. AFP reporters verified the video's location to be approximately two kilometers from the command site. Northern Shan state has been plagued by conflict since late last month when an alliance of ethnic armed groups resumed their offensive against the military near the highway to China's Yunnan province. These clashes have undermined a truce brokered by Beijing in January, which had temporarily halted a campaign by the Arakan Army (AA), the Ta'ang National Liberation Army (TNLA), and the MNDAA. Residents reported several air strikes by the military around the town during the ongoing conflict.

The recent fighting has resulted in dozens of civilian casualties, according to the junta and local rescue groups, though neither side has disclosed their own casualty figures. Indonesia's foreign minister criticized the junta's reluctance to participate in a regional peace plan to address the conflict, following a meeting with her Singaporean counterpart at an Association of Southeast Asian Nations foreign ministers meeting in Laos. Both Singapore and Indonesia have expressed disapproval of the junta's seizure of power, which has caused divisions within the 10-member Asean bloc. Myanmar's border regions are inhabited by numerous ethnic armed groups who have fought for autonomy and control over valuable resources since the country's independence from Britain in 1948. Some of these groups have provided sanctuary and training to newer 'People's Defence Forces' (PDFs) that emerged to combat the military following the 2021 coup.

China, a significant ally and arms supplier to the junta, maintains connections with armed ethnic groups in Myanmar that control areas near its border. Beijing is closely monitoring the situation in northern Myanmar and has called for an end to the fighting, according to foreign ministry spokeswoman Mao Ning. China has also urged all parties involved to ensure the safety of its borders, border residents, and Chinese projects, firms, and personnel in Myanmar. MNDAA's Li Jiawen reported that three people were killed and ten wounded, including three Chinese nationals, in military air strikes on the MNDAA-held city of Laukkai near the Chinese border this week. The armed group captured Laukkai in January after around 2,000 junta troops surrendered, marking one of the military's most significant defeats in decades.