Myanmar's military junta and an alliance of armed rebels announced Friday a cease-fire after months of conflict claimed hundreds of lives.

Conflict has raged in Myanmar's northern Shan state since October, when the alliance of ethnic minority groups launched an offensive against the junta, the biggest threat it face since a takeover of power in 2021.

The alliance has seized several towns and border hubs vital for trade with China.

"With the help of China's facilitation, there was a meeting in (the southern Chinese city) Kunming. We have reached a cease-fire agreement," junta spokesperson Zaw Min Tun told the Agence France-Presse (AFP).

Tar Bhone Kyaw of the Ta'ang National Liberation Army (TNLA) – one member of the alliance – said they had "agreed to reopen border trade" with China.

China also announced the cease-fire Friday.

"The two sides agreed to an immediate cease-fire, to disengage military personnel and resolve relevant disputes and demands through peaceful negotiations," Foreign Ministry spokesperson Mao Ning said.

The talks took place with the "mediation and facilitation of the Chinese side" on Wednesday and Thursday in the city of Kunming in Yunnan province, which borders Myanmar, she said.

Mao did not say what areas were covered by the cease-fire.

The armed alliance claimed last week to have captured a northern town notorious for online scam operations in another blow to the junta.

Since November people have been fleeing Laukkai town, located in a district bordering China, that was run by a Myanmar military-aligned militia and known for gambling, prostitution and online scams run out of compounds staffed by thousands of people, many trafficked.

The alliance – made up of the TNLA, the Myanmar National Democratic Alliance Army (MNDAA), and the Arakan Army (AA) – said the town was now under their control.

Last week, following reports that an artillery shell had exploded across Myanmar's border with China, Beijing voiced "strong dissatisfaction" that fighting had caused Chinese casualties and said it would take "all necessary measures" to protect its citizens.

Last month, Beijing said it had also mediated talks between the Myanmar military and the allied ethnic armed groups and reached an agreement for a "temporary cease-fire."

But clashes continued thereafter in parts of Shan state, and China's embassy asked its citizens to evacuate an area along the shared border owing to security risks.

On Friday, spokesperson Mao said "both sides pledged not to compromise the safety of Chinese border residents and Chinese personnel in Myanmar."

"Maintaining the momentum of cease-fire and peace talks in Northern Myanmar is in line with the interests of all parties in Myanmar and also helps to maintain peace and stability at the border," she said.