The paper briefly reviews the current state of world market of rare earth elements that are the strategic raw materials for advance technologies. Special attention is given to China as key player in this market and proactive investor in rare earths mining in Arctic region. We also present the outline of rare earths deposits in Russian Arctic. We conclude by highlighting possible Chinese-Russian cooperation in rare earths mining taking into account the feasibility for collaboration with China under anti-Russian economic sanctions along with minimization of geo-economic risks and standing for rational protectionist policiesfor Russia in the Arctic.