Iran-China deal amid global power shifts from unipolarity to bipolarity suggests Iran’s counterbalancing vis-à-vis Western Powers, particularly U.S. as, the U.S. withdrew from the Joint Comprehensive Plan of Action (JCPOA) in May 2018 agreed upon on July 14, 2015, between Iran, the U.S., and its western allies. However, another view persists that Iran’s “Look to the East Policy” adopted back in 2005 was meant to strengthen relations with natural regional neighbors that seem a rational choice for Iran. This notion is somewhat true as ideological concerns became obsolete with the demise of the Soviet Union. Today’s foreign policy approach moves around the spatial(relates to geography) dimension as states cannot change their neighbors. Furthermore, it is in the mutual interest of the countries of the region as well. To understand the true essence of the Iran-China deal it is pivotal to understand the factual history and thorough understanding of Iran’s foreign policy on an ontological basis. Academicians gauge this deal from the prism of power balance or bandwagoning approach epistemologically, but this study uncovers the facts based on rational choice theory and its impacts on Iran.