OBJECTIVES:  The MERIA study was a retrospective meta-analysis of cardiovascular event rates from long-term studies with acarbose in type 2 diabetes patients. The findings showed that acarbose treatment was associated with a significant reduction in the risk of cardiovascular events, supporting the hypothesis that postprandial hyperglycemia is a risk factor for cardiovascular disease. The aim of this health economic study was to assess the cost-effectiveness of acarbose given in addition to existing treatments (either diet or sulphonylurea) in patients with type 2 diabetes, in the Chinese setting. METHODS: The CORE Diabetes Model, a peer-reviewed, published, validated computer simulation model, was used to project long-term clinical and cost outcomes in type 2 diabetes patients receiving acarbose or placebo in addition to their existing treatment. Transition probabilities and risk adjustments were derived from published sources. Treatment effects and baseline cohort characteristics were based on the MERIA meta-analysis. Direct costs were retrieved from published sources and projected over patient lifetimes from a Chinese health care perspective, reported in Renminbi’s (RMB). Costs and clinical benefits were discounted at 3% per annum. RESULTS: The results of the simulations indicated that acarbose treatment was associated with improvements in discounted life expectancy (0.27 years) and QALE (0.26 years) but was on average marginally more expensive than treatment in the placebo arm (RMB 17,081 per patient). This led to incremental cost-effectiveness ratios of RMB 62,717 per life year gained and RMB 66,633 per quality-adjusted life year gained. An acceptability curve showed that with a willingness to pay of RMB 100,000, acarbose treatment was associated with a 76% probability of being cost-effective. CONCLUSIONS: This study demonstrated that addition of acarbose to existing treatment was associated with improvements in life expectancy and quality adjusted life expectancy and provides good value for money over patient lifetimes in the Chinese setting.