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Satellite

Holstein starts the game as a vassal of Denmark

A satellite state, also known as a puppet, Sub-state, dominion or vassal, is a country which allows another nation to represent it on the international stage. The satellite state remains independent in terms of government, economics, and other internal affairs, but may not sign treaties or declare war on foreign countries. The "mother country" retains special privileges, being able to sign defensive alliances and military access treaties with vassal state. The overlord can take control of the puppet's troops (however not in vanilla and AHD).

If the mother country is at war then the satellite(s) or dominion(s) will automatically be at war with the enemy too (except if the enemy of the war is the sphere leader of the satellite).

A puppet-master relationship can be formed in two ways:

  1. A nation can force another nation to be a puppet state by war.
  2. A puppet state can be formed by releasing a nation peacefully.

However, great powers can still attempt to place the satellite state within their sphere of influence or, if the satellite's government allows it, invest in the local economy. The mother country (if a Great Power) receives 100% bonus influence with its satellites.

Formable countries can still be formed by influencing a puppet nation even if the forming nation is not the liege. This can be used to "steal" other nations puppets by forming countries. The liege can not do anything to prevent the formation. This is typical for North German Federation North German Federation and Holstein Holstein. If one intends to form a country where ones puppet is needed, is it NOT enough to be the liege. The only way is putting it in one's sphere of influence.

Dominions are countries that are your same culture group and are your puppets. If you're Spain and you vassalize Portugal, Portugal becomes a dominion instead of a satellite. However if France vassalizes Portugal, they become a satellite. There are no gameplay difference between the two, and it is solely for flavour.

China

  China starts with its own special kind of satellites called substates. They act as very loyal puppets as long as China is an uncivilized nation and will be inherited after China westernizes. They join wars that China enters as an ally, and provide military access to both sides. That is however not the case during the civil war between China and   Heavenly Kingdom. The substates include   Yunnan and   Qinghai.

If a satellite becomes a Great Power it automatically breaks free of the mother country. A succesful revolt in either the liege or the puppet nation will also make the country free.