Spheres and puppets
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 cannot do anything to prevent the formation. This is typical for North German Federation and Holstein. If one intends to form a country where one's 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 released from colonial regions. A dominion gets ownership of and cores on all colonies and protectorates in a contiguous area, one of which becomes the capital and gives it its name and primary culture (it also accepts its overlord's primary and accepted cultures). It is civilized and has its overlord's technology and government type, but no reforms. The colonial points that the overlord was spending on upkeep are refunded. Dominions are therefore useful to free up colonial power for colonial competition and allow factories to be built in colonial areas (though since they tend to have low literacy, factories will not be very productive).
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 太平天国. The substates include Yunnan and Qinghai. If the substate westernizes before China, it will automatically break free.