Near-deserted streets in Laukkai in Myanmar's northern Shan State in mid-July
Near-deserted streets in Laukkai in Myanmar's northern Shan State in mid-July AFP

Myanmar's military withdrew from some positions close to China's border to prioritize the "safety of people", the junta chief said, days after an alliance of ethnic armed groups said they had routed state troops in the area.

Shan State in eastern Myanmar has been rocked by fighting since late June when the Myanmar National Democratic Alliance Army (MNDAA) renewed an offensive against the military along a major trade highway to China.

"With regard to the situation of Shan State, security forces withdrew their positions by considering the security of current areas and safety of people," Min Aung Hlaing said in a speech on state television on Monday night.

"The government will continually strive to ensure peace and stability -- not only in Shan State, but the entire nation," he added.

His comments came days after the MNDAA said it had captured a regional military command after weeks of clashes, in a major blow to the junta.

Alliance fighters "fully captured the headquarters of the northeast military command" in Lashio, the group said in a statement Saturday.

Junta spokesman Major-General Zaw Min Tun admitted Monday that the military had lost contact with senior officers from the command after intense fighting.

"Got last contact with the senior officers at 6:30 pm on August 3, and we lost contact with them till now," he said in a statement.

"According to reports that are still being confirmed, it is known that terrorist insurgents arrested some senior officers."

Dozens of civilians have been killed or wounded in the recent fighting, according to the junta and local rescue groups.

Myanmar's borderlands are home to myriad ethnic armed groups who have battled the military since independence from Britain in 1948 for autonomy and control of lucrative resources.

Some have given shelter and training to newer "People's Defence Forces" that have sprung up to battle the military after its ouster of Aung San Suu Kyi's government in a 2021 coup.

China is a major ally and arms supplier to the junta, but analysts say it also maintains ties with armed ethnic groups in Myanmar that hold territory near its border.

Min Aung Hlaing said Monday the alliance was receiving weapons, including drones and short-range missiles, from "foreign" sources, which he did not identify.

"It is necessary to analyse the sources of monetary and technological power," the military leader said.