Chelsea open their campaign in Munich tomorrow night.
"The Champions League is where the club belongs," James says.
"We’re happy to be back playing against the best teams and competing in the best competitions, because we haven’t been in this one for the last two seasons.
"They are always super strong. They are a European giant, and they have won the competition before and know what it takes. So, it will be a super tough game.
"Captaining Chelsea was always something I dreamt of, especially in the Champions League. Having been here a while now, and seeing the change and how we've had to adapt, we’re in a good position.
"We finished last season super strong, and I hope this season we can build on that. I don’t look at what other people say; we can achieve anything as long as we understand and believe.
"We know we can go far with the team we have. That’s all that matters."