China has resettled the refugees who poured into the southwestern Yunnan province after government forces clashed with Myanmar National Democratic Alliance Army (MNDAA) in Myanmar's Kokang region, said China's Foreign Ministry Spokeswoman Hua Chunying on Tuesday.

"Situation in Myanmar's northern region has a direct impact on the stability of China-Myanmar border. We hope that the Myanmar government and MNDAA could cease fire and solve the problem through peaceful talks," said Hua.

According to local media, fighting continued in Myanmar's Kokang battlefield Tuesday with the government forces combing the areas where troops of the Myanmar National Democratic Alliance Army, termed by the government as Kokang renegade troops, were retreating.

Clashes took place for four times between the two sides during the day, the report said.

The government forces launched air strikes on the Kokang ethnic rebels in some areas of Kokang region, the country's northeastern Shan state, following the outbreak of fighting between the two sides in Laukkai on Monday.

The government forces' intermittent bombing with some jet fighters started in the morning at about 7 am (local time) and lasted until afternoon at 4:00 pm in areas of Phone Shwe Shan and Kyi Hto Shan areas in the region's Kong Kyan township, the report added.

Fighting broke out on Monday afternoon when 1,000-strong MNDAA launched attacks on several government outposts in Kokang region, covering Laukkai, Tar Shwe Tan, Kong Kyan and Nyan Khun.

The government forces in Laukkai counter-attacked MNDAA in self-defence on the day, accusing the Kokang army of undermining peace and stability in the region.