Kanji is 籠, which means basket.

I don't really understand the context though.

Mallack said:
Kanji is 籠, which means basket.

I don't really understand the context though.

Actually, that's dragon. By adding the writing/whatever for "bamboo" onto the top, it becomes basket.

There is no "basket".
The kanji on her forehead is "dragon" as said and that on her hat is "China", 中.
<The most appropriate meaning to here.>
Name-teasing, I think.