How can I distinguish between Western style spirits and Chinese style spirits (liquor)?
烈酒 means hard liquor. 洋酒 means western liquor. Conceivably it could include wine and such, but it usually refers to western hard liquor (e.g., whiskey, vodka, rum).
Here's an example sentence for your benefit:

The city of Guangzhou consumes nearly 40% of the foreign hard liquor sold in China.
广州人所消费的烈酒，占了中国洋酒总量的近40%。