From HoopChina (via a translated version from The Hoops Market):
According to Chinese sources, the talks between Yao Ming and the Houston Rockets to extend the center's contract are in a delicate situation. The Chinese All-Star wants a 6-year contract to agree to re-sign with the Rockets, while the NBA franchise is only willing to offer a 4-year contract.
Oh boy. This is the last problem that the Rockets want to have.
My take on the subject? Don't worry about it. The Rockets will extend Yao Ming, because they have to. Everything about Daryl Morey's "plan" depends on Yao, especially when it comes to this season. The Rockets don't want to lose their Chinese market, they don't want to lose an All-Star caliber center, and they don't want to have to go through another 2009-2010 season again. Whatever it takes, at the end of the day, the Rockets will re-sign Yao Ming. So, don't worry about it right now.
To tie lose ends, this may be the issue from which the DeMarcus Cousins rumors are being generated. If the Rockets decide that, somehow, Yao isn't worth a six-year deal and a ton of money, perhaps they'll make a run at the third or fourth pick in the draft to snag Cousins, a wonderful talent at center.
However, if I had to decide right now what the outcome of all of this will be, it's option A. The Rockets will re-sign Yao Ming. They really don't have a choice.