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As the French player, you have a number of satellite states at your disposal that either already exist at the the start of the campaign or can be created by activating various events. Does France get VP when its satellite states control cities that are on France's objective list? For example, does France get VP from Milano because it is controlled by the Kingdom of Italy?

Yes.
You also gain point by creating the various new satellite states such as the Rhine Confederation and the Duchy of Warsaw, as well as holding the objective cities in these new states.