Let $B$ be a subset of an (additive) abelian group $F$. Then $F$ is free abelian with basis $B$ if the cyclic subgroup $\langle b \rangle$ is infinite cyclic for each $b \in B$ and $F=\sum_{b \in B} \langle b \rangle $ (direct sum). A free abelian group is thus a direct sum of copies of $\Bbb Z$. A typical element $x \in F$ has a unique expression $$x = \sum m_b b$$ where $m_b \in \Bbb Z$ and almost all $m_b$ (all but a finite number) are zero.
I understand that by $F = \sum_{b \in B} \langle b \rangle$ (direct sum), they mean an external direct product of the infinite cyclic subgroups $\langle b \rangle$.
But what does $x=\sum m_bb$ mean?
Since $F = \sum_{b \in B} \langle b \rangle = \{ ...,-b_1, 0, b_1, ...\} \oplus \dots \oplus \{\dots, -b_n, 0, b_n, \dots\}$ and $x \in F$, then $x=(m_1b_1, \dots, m_nb_n)$. But each $b$ is an element of $F$ and therefore by the same logic shouldn't each $b$ be of the form $(j_1b_1, \dots, j_nb_n)$? And therefore $x=(m_1(j_1b_1, \dots, j_nb_n), etc \dots)$?
What exactly am I misunderstanding here? This seems like a circular definition.
No. They mean an internal direct sum of these cyclic subgroups.
It means that every $x$ may be written as an integral linear combination of the elements of $B$. Moreover, because the sum is direct, the coefficients are uniquely determined by $x$.
This is just the generalisation of the concept of a vector space with a fixed basis if we allow the coefficients (scalars) to lie in the ring $\mathbb{Z}$ instead of in a field. The price to pay is Abelian groups are generally not free, in opposition with vector spaces (which are always free).
Example. Consider $F = \mathbb{Z}^2$, and $B = \{b_0,b_1 \} = \{ (1,0),(-1,1)\}$. Then for example $$x = (2,-1) = b_0 - b_1 = 1b_0 + (-1)b_1,$$ so $m_{b_0} = 1$, $m_{b_1} = -1$ in this case. Note that the addition operation $+$ is the one in $F$ (hence the internal direct sum).