It's an interesting item. Definitely Chinese. As Tigerchips says, it looks to be a brush holder, however, I've not seen one in this form before. The pierced section reminds me of oriental ceramic pillows, I don't know why it would have this part, its possibly a container for something. The glaze is a Jun type.
I don't recognise the character, it could be an archaic style of character, I'll ask my 老婆