In fact, the MNDAA withdrew from Lashio due to great pressure from China. If it does not withdraw, China will block the MNDAA from all sides, and the military council will bomb the city from the air. This interference in the question of who should govern a major city in Burma is a clear violation of Myanmar’s sovereignty.
In the case of Lashio, neither the MNDAA nor the military council will benefit. The MNDAA will not benefit from losing the city after spending a lot of blood and sweat in the battle, and the military council will lose both politically and militarily by controlling only a small area of Lashio with the help of China. However, the situation in northern Shan may change in the future.