SHANGHAI, Jan 5 (Reuters) - China has begun an anti-dumping investigation on brandy imported from the European Union, it said on Friday, a step likely to increase tensions with the bloc that is scrutinising Chinese electric vehicle subsidies and biodiesel imports.

The investigation announced by China's commerce ministry will focus on brandy in containers of less than 200 litres (43.99 UK gallons) from the European Union.

It was prompted by a complaint submitted by the China Alcoholic Beverages Association on behalf of the domestic brandy industry, the ministry said.

China is a major market for French brandy and shares in French spirits companies Remy Cointreau and Pernod Ricard fell after the news. Remy Cointreau shed 8% and Pernod Ricard was down 4% by 0906 GMT, the worst performers on France's blue chip CAC 40 Index.

The companies sell cognac, brandy from the Cognac region of France, under brands including Hennessy, Remy Martin and Martell. Remy Cointreau and Pernod Ricard did not immediately respond to requests for comment.

Tension between China and Europe has mounted, especially over trade. In December at a summit, EU leaders said Europe would not tolerate "unfair competition" from China, and Beijing told the EU it expected Brussels to exercise prudence when introducing "restrictive" trade policies.

Since September, the EU has weighed levying tariffs on Chinese-made EVs, saying they unfairly benefit from subsidies.

In December, the EU said it would begin an anti-dumping investigation into biodiesel imports from China, which the bloc's industry says has had a severe impact on domestic production, leaving it unable to compete. (Reporting by Casey Hall and Brenda Goh; Additional reporting by Dominique Vidalon in Paris and Michal Aleksandrowicz in Gdansk; Editing by Jacqueline Wong and Barbara Lewis)