The Ministry of Commerce said the probe followed a complaint filed in November by China's liquor association on behalf of the domestic brandy industry.
It said the complaint included "the relevant evidence required for proceeding with an anti-dumping investigation as stipulated by... (national) regulations".
The probe will examine suspected dumping between October 2022 and September 2023, as well as industrial damages incurred between 2019 and 2023, the statement said.
The investigation would likely conclude by January 5, 2025 but may be extended by six months under "special circumstances", it added.
China imported more brandy than any other spirit in 2022, with most of it coming from France, according to a report by research group Daxue Consulting.
Tensions between Beijing and the EU have simmered since the bloc signalled it was seeking to reduce its reliance on trade with China in technology and other areas.
In October, the EU announced a probe into China's subsidies for homegrown electric vehicle (EV) makers after accusations that their cheap products undercut European competitors.
The bloc is also mulling a separate investigation into Chinese support for its manufacturers of wind turbines.
Beijing has expressed "strong dissatisfaction" with the EV probe and denied that its backing for other industries is unfair.
EU chief Ursula von der Leyen on Friday skirted a question about the latest Chinese move on liquor, insisting only that Brussels wanted a "level playing field" with Beijing on trade.
"We have to have transparency about what kind of subsidies are given and under what circumstances," the European Commission president said.
She said that the EU had agreed with China's leadership at a summit last month to "go point by point through all the complaints we have" to try to find solutions.
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