After leaving university, Matheson spent two years in a London
agency house before departing for
Calcutta, India, and a position in his uncle's trading firm, Mackintosh & Co. In 1807, Matheson was entrusted by his uncle with a letter to be delivered to the captain of a soon-to-depart British vessel. He forgot to deliver the missive and the vessel sailed without it. Incensed at his nephew's negligence, the uncle suggested that young James might be better off back in Britain. He took his uncle at his word and went to engage a passage back home. However, a chance encounter with an old sea captain instead led to Matheson departing for Canton (
Guangzhou). Matheson first met
William Jardine in Bombay in 1820. The two men later formed a partnership which also included
Hollingworth Magniac and
Daniel Beale. At first, the new firm dealt only with trade between Canton, Bombay and Calcutta, at that time called the "country trade" but later extended their business to London. In 1827 Alexander Matheson lent James a small hand press for the printing of the
Canton Register which James founded as the first English language news sheet in China, which was edited by
William Wightman Wood, an American from
Philadelphia who would later work for rival trading house Russell & Co. On 1 July 1832,
Jardine, Matheson and Company, a partnership, between William Jardine, James Matheson as senior partners, and Hollingworth Magniac, Alexander Matheson, Jardine's nephew Andrew Johnstone, Matheson's nephew Hugh Matheson, John Abel Smith, and Henry Wright, as the first partners was formed in Canton, and took the Chinese name 'Ewo' (怡和 "Yee-Wo" Literally
Happy Harmony). The name was taken from the earlier
Ewo Hong founded by
Howqua which had an honest and upright reputation. In 1834, Parliament ended the monopoly of the British East India Company on trade between Britain and China. Jardine, Matheson and Company took this opportunity to fill the vacuum left by the East India Company. With its first voyage carrying tea, the Jardine ship left for England. Jardine Matheson began its transformation from a major commercial agent of the
East India Company into the largest British trading
hong, or firm, in Asia from its base in Hong Kong. Jardine wanted the opium trade to expand in China and dispatched Matheson to England to lobby the Government to press the
Qing government to further open up trade. Matheson's mission proved unsuccessful and he was rebuked by the then British Foreign Secretary the
Duke of Wellington. In a report, Matheson complained to Jardine over being insulted by an "arrogant and stupid man". Matheson expressed his views plainly, contemporaneously describing, "... the Chinese [as] a people characterised by a marvellous degree of imbecility, avarice, conceit and obstinacy..." Matheson returned to Asia in 1838 and the following year Jardine left for England to continue lobbying. ==Return to Scotland==