The EIA gathered the evidence from speaking to the main Chinese manufacturers of polyurethane (PU) foam.
"We were dumbfounded when out of 21 companies, 18 of them across China confirmed use of CFC-11, while acknowledging the illegality and being very blase about its use", said Avipsa Mahapatra at the EIA.
"The majority of China's foam industry continues to use CFC-11", the EIA added in a press release.
It said: "Detailed discussions with company executives (in China) make clear these are not isolated incidents but common practice throughout the industry".
In using the ozone-depleting chemical, some Chinese industry players argue that it is better quality and cheaper than more sustainable alternatives, the report explains.
The foreign ministry told AFP on Monday that China had made "tremendous contributions" to achieving the aims of the Montreal Protocol.
CFCs are used in China.
A new survey by the Environmental Investigations Agency (EIA) has found that China is at least partially responsible for the mysterious spike of atmospheric levels of chlorofluorocarbons (CFCs), heat-trapping substances that have been banned worldwide for years.
Zverev wins battle of Wimbledon's rising stars
But Djokovic snapped out of his torpor and took charge once he broke in a marathon seventh game of the second set. The Czech faces Dutch 20th seed Kiki Bertens, who stunned five-time Wimbledon victor Venus in the third round .
Roger Federer wastes match point, loses to Kevin Anderson at Wimbledon
His last semifinal appearance at a Grand Slam was at the US Open in 2016, where he lost in the final to Stan Wawrinka. South African Kevin Anderson outlasted Roger Federer 13-11 in the fifth set of their Wimbledon quarterfinal.
England fans make late dash to Russian Federation for World Cup semi-final
England went to extra time and penalties in its first knockout stage match but not in its second and should be a bit more fresh. They worked in '98 and we worked today, we reached out target to get to the final.
"The Multilateral Fund paid for the phase out of the production of CFC-11 and CFC-12", the expert said, naming two ozone depleting agents.
The EIA, in its report, notes the fines for producing, selling or consuming ODS are quite low and range from 5000 RMB ($750) to 1 million RMB ($150,000) "depending on the violation". The authors discounted the idea that the increase of CFC-11 in the atmosphere is due to existing factories being decommissioned.
If China does not stop this illegal production, it will endanger the ozone layer that is hard to return to its natural state.
Dr Stephen Montzka from the US National Oceanic and Atmospheric Administration (Noaa) told BBC News: "The pervasiveness of the use of CFC-11 that seems apparent in China based on their survey is quite fantastic, although it is hard for me to assess the accuracy of the emission estimate they make to know if it is indeed likely that this activity can explain all or most of what we are observing in the global atmosphere".
"It is critical for the government of China not to treat these as isolated incidents", Mahapatra told BBC News. "It requires a comprehensive nationwide intelligence-led investigation and higher penalties throughout the sector that fit the crime".
"This is an environmental crime on a massive scale", said EIA campaign leader Clare Perry.
They went to Kigali, Rwanda, to eliminate hydrofluorocarbons (HFCs) and take 0.5C out of future global warming, and the 170 countries that successfully negotiated an amendment to the Montreal protocol treaty agreed to get rid of 90% of them. The EIA report recommends that the Montreal Protocol and its Parties should, "request the Scientific Assessment Panel (SAP) and Technology and Economic Assessment Panel (TEAP) to further analyse the atmospheric measurements and foam sector and provide information and recommendations to the Parties". The researchers identified eastern Asia as the potential source of the CFC-11 emissions.