China called on Thursday for an immediate ceasefire in fighting in northern Myanmar, after the Myanmar military said it had lost control of a strategic northern town on the Chinese border following clashes with ethnic armed groups.

Beijing "urges all parties to immediately cease fire and stop fighting," foreign ministry spokesperson Wang Wenbin told a regular briefing, urging warring parties to resolve "differences through peaceful means using dialogue and consultation".

The Myanmar National Democratic Alliance Army (MNDAA), along with the Arakan Army (AA) and the Ta'ang National Liberation Army (TNLA) say they have seized sections of key roads to China -- Myanmar's biggest trade partner -- since the beginning of their Friday offensive last week, and captured dozens of junta military posts since they began “Operation 1027” (named after the Friday 27 October launch date).

On Wednesday the groups said they were in "complete control" of Chinshwehaw town on the China border and Hsenwi, which sits on the road to the China border.