CNBC's Quintanilla: The U.S.-Chinese "Tightrope"

Talks between China and the U.S. are underway--to try and work out some big economic issues between the two countries. The American delegation is led by U.S. Treasury Secretary Hank Paulson--and Fed Chairman Ben Bernanke is along to add to the importance of the mission. CNBC's Carl Quintanilla is in China--and reported on "Squawk Box."

Carl related the major points of contention. The U.S. wants China to open its markets to more American companies and they want the Chinese to crack down on piracy of CD's and software and other copyright issues. And the Americans are looking for China to do something about the environment.

But--as Carl pointed out--the U.S. has to tread somewhat lightly. That's because China is a main source of imports to the U.S. and needs Chinese products. And the U.S. needs China to help out with North Korea and that country's production of nuclear weapons.

Paulson is saying not to expect too much from these talks. He says the idea--is really--to keep talking.