I have a few reasons why:
Edit: Turns out the patch notes are wrong. You can only concentrate development from your subjects' lands (all of them I think) and your territories (not your states).
- It is ahistoric. By and large, the way China, and other nations that had similar arrangements, dealt with tributaries was by collecting tribute which is already depicted in game through the yearly tribute. These countries did not take everything that wasn't nailed down unless the tributary state had upset them in some way like refusing to pay tribute, but this can already be represented in the pillaging peace deal option.
- It is overpowered. As FlorryWorry mentioned, one could make a large country like China into a tributary for a base cost of 50% aggressive expansion at the peace deal, and then take in hundreds of dev at no extra AE cost as well as 0 monarch power cost. This can be done every 50 years as long as one holds on to the tributary or refreshes it at least once every 50 years. This can cause a negative feedback loop for the affected country where it will be placed in perpetual bondage of one country until it is ultimately annexed. The overlord nation can drain it of 20% of its development then 25% of its yearly manpower for a maximum of 15 years. Then, the now substantially weaker nation can cancel the tributary, allowing the overlord nation to repeat the process over again once the 50 years are up. This process can repeat until finally, the more powerful nation can annex it when it's mostly low development provinces.
- It's likely unintended. The patch notes say "You can concentrate development of your or your vassal states transfering the development to your capital." Usually "your vassal states" refers to non-tributary subject states. The way this note is written also implies that one would have to convert an area from a territory/trade company to a state in order to concentrate development. That doesn't seem to be the case currently, but also that would be ahistoric as anyone with even a passing knowledge about how the British treated Indian industry would be able to mention.
- This is a way to get development that the country doing it does not have to pay any monarch power for. When vassals are annexed, one pays dip power. When provinces are directly annexed, one pays admin power. Stealing development from subjects through this option costs no power. It may make it more difficult to annex vassals, but that is not a concern with tributaries.
Edit: Turns out the patch notes are wrong. You can only concentrate development from your subjects' lands (all of them I think) and your territories (not your states).
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