React frontend and REST API, CSRF - reactjs

Question

Using React on the frontend with a RESTful API as backend and authorisation by a JSON Web Token (JWT), how do we handle sessions? For example after login, I get a JWT token from REST. If I save it to localStorage I am vulnerable to XSS, if I save it to cookies, same problems except I set cookies to HttpOnly, but React can't read HttpOnly Cookies (I need to read cookie to take JWT from it, and use this JWT with REST requests), also I didn't mention the Cross Site Request Forgery (CSRF) problem. If you're using REST as backend, you can't use CSRF Tokens.
As a result, React with REST seems like a bad solution and I need to rethink my architecture. Is it possible to offer your users a secure React application that handles all business logic on the REST API side without fear of losing their data?
Update:
As far as I understood, it is possible to do this:
React makes an AJAX call to the REST API
React gets a JWT token from the REST API
React writes HttpOnly cookie
Because React can't read HttpOnly cookies, we use it as-is in all our REST calls where we need authentication
The REST API calls to check the XMLHttpRequest header, which is some kind of CSRF protection
The REST API side checks for cookie, reads JWT from it and does stuff
I lack theoretical knowledge here. The logic looks pretty secure, but I still need an answer to my questions and approve of this "workflow".

Answer 1

React makes AJAX call to REST API
assured, lots of restful resource client lib available
React gets JWT token from REST
assured, this is what JWT should do
React writes httponly cookie
I don't think so, It should not work, but session is not such a important thing, it'll soon get out of date, and recheck password on key operations, even the hackers got it in a very short time, you can bind session token together with IP when user login and check it in your backend apis. If you want it most secured, just keep token in memory, and redo login when open new page or page refreshes
Because react can't read httponly cookie, we use it as-is in our all REST call where we need authentication
assured, check user and permissions through login token, like csrf you can put your login token into your request header, and check it in your backend apis.
Bind login token to your own restful lib will save you a lot codes
REST on calls checks XMLHttpRequest header, what is some kind of CSRF protection
REST side check for cookie, read JWT from it and do stuff
assured, as most people do.
Also, bind csrf token to your own restful lib will save you a lot codes
use user token in header https://www.npmjs.com/package/express-jwt-token
Authorization JWT < jwt token >
use csrf token in header https://github.com/expressjs/csurf
req.headers['csrf-token'] - the CSRF-Token HTTP request header.
restful client https://github.com/cujojs/rest
react with jwt https://github.com/joshgeller/react-redux-jwt-auth-example

Answer 2

Your server can set the JWT cookie directly as a response to the login request.
The server responds to POST /login with Set-Cookie: JWT=xxxxxx. That cookie is http only and therefore not vulnerable to XSS, and will be automatically included on all fetch requests from the client (as long as you use withCredentials: true).
CSRF is mitigated as you mentioned, see OWASP for details.