Fighters from Myanmar's most powerful ethnic minority armed group, the United Wa State Army (UWSA), have moved into the strategic town of Lashio, which has been the center of conflict between the junta and another ethnic armed group for weeks, according to statements from both parties on Sunday.

Fighting in Lashio, located in northern Shan state, has intensified since early this month after the Myanmar National Democratic Alliance Army (MNDAA) resumed its offensive against the military. On Thursday, the MNDAA announced that it had taken control of the town, home to around 150,000 people, and the military's northeastern command, a claim that was refuted by the junta. The UWSA, another ethnic minority armed group with a larger force, intervened on Saturday, moving personnel into Lashio to safeguard its assets, as stated by its spokesman to AFP.

The UWSA, considered the best-equipped among Myanmar's ethnic rebel groups and with strong ties to China, has thus far avoided involvement in the conflicts triggered by the 2021 military coup. The group's spokesman, Nyi Rang, informed AFP that UWSA security members entered Lashio on the night of the 27th to protect their external relations office and properties, having previously notified both warring parties and gaining their consent for the move.

Nyi Rang emphasized that the UWSA personnel in Lashio would not intervene, cooperate, or support either fighting group. The number of UWSA fighters in the town and the duration of their stay remain unspecified. The junta's information team confirmed that they had been informed beforehand about the UWSA's actions, though no specifics were provided. Military sources affirmed to AFP on Sunday that the northeastern command remained under their control, while a spokesman for the MNDAA could not be reached for comment.

The potential loss of Lashio and its regional military command would represent a significant setback for the junta, which has seen territory ceded to the MNDAA and other armed groups in recent weeks. In January, the MNDAA seized the city of Laukkai near the border with China after approximately 2,000 junta troops surrendered, marking one of the military's most substantial defeats in decades. The Wa region, south of Laukkai, remains heavily controlled, with checkpoints and strict internal regulations, and utilizes the Chinese yuan and internet services.

China, a key ally and arms supplier to the junta, maintains connections with armed ethnic groups in Myanmar, particularly those near its border. Beijing has expressed concern over the situation in northern Myanmar and called for a cessation of hostilities, as stated by foreign ministry spokeswoman Mao Ning at a press conference on Thursday. Neither the junta nor the MNDAA has disclosed casualty figures from the Lashio conflict, which began on July 3, though local rescue groups report numerous civilian casualties.