The former All-Star, who has played with several NBA teams including the Houston Rockets, finished last season with the Atlanta Hawks. His long-time team up with now retired Houston Rockets center Yao made McGrady a popular figure in China.
Qingdao has never made it to the CBA finals.
His appearance in the CBA is expected to attract more fans to domestic games.
"I am happy for him," James said. "It will be good for the game." James says he follows the CBA and said the league is "very good and growing big."
With no Chinese stars currently plying their trade in the NBA, there's a huge opportunity for the country's homegrown stars to show the world what they're missing.