An Yanshi, 41, said he received a patent for the tea, which he grows using panda droppings as fertilizer at his Ya An Lu Shan tea garden near Chengdu, CNNGo reported Wednesday.
An told Sichuan News the tea will be marketed as having an "anti-cancer" function.
"Panda's main food is bamboo and bamboo leaves contain anti-cancer elements, so does green tea," he said.
The tea is priced at 10 times the price of Zhu Ye Qing, which was formerly the most expensive tea in the world.
"Panda Tea must be the world's most expensive tea all the time -- (we) need to let the world know that this kind of tea is nurtured by panda feces," An said.
He said only 1.1 pounds of the tea, which he described as "a gift from God," will be available each year.